President Muhammadu Buhari has received a report of a new revenue formula submitted by the Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC).
President Buhari, however, said he would await the outcome of the constitutional review process before presenting the report of the review of the vertical revenue allocation formula to the National Assembly as a Bill for enactment.
The President said this while receiving the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) report, led by Engr. Elias Mbam.
‘‘Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment,” the President said, as quoted in a statement signed by spokesperson Femi Adesina.
‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.
The President assured members of the Commission that the Federal Government would immediately subject the report to its internal review and approval processes.
President Buhari, therefore, declared that for the nation to have a lasting review of the present revenue allocation formula, there must first be an agreement on the responsibilities to be carried out by all the tiers of government.
In particular, he noted that the proposal seeks a 3.33% reduction in the current Federal Government allocation and, the other hand, an increase of 3.07% and .44% for the States and Local Governments on the other hand.
He added that with regards to the Special Funds, the report by the RMAFC proposed an increase of 2% for the Federal Capital Territory (FCT) and a decrease of .38% for the Development of Natural Resources.
RMAFC chairman noted that while Section 32(b), Part 1 of Third Schedule of the 1999 Constitution 9 (as amended) empowers the Commission to review from time to time the revenue allocation formulae; the inadequate and decaying infrastructure, as well as heightened widespread internal security challenges across the country also necessitated the exercise, among others.